Daily Commentaries 15th Feb 07

Ahead of the CNY festival next week, the market put in a broad based rally after a few days of correction with volume breaking the 2.8bn shares mark. Today’s corporate news focuses on Ranhill which is executing Phase 2 and 3 of its RM5.6bn Libyan housing construction project and SP Setia which is selling land worth RM107m in Pulai. RHB provided more details of its plans to sell RHBCap shares back to its shareholders while Green Packet and YTL-e are tipped to win 2 WiMAX licenses. In terms of results, Magnum 4D’s was a disappointment while Ann Joo’s and Digi’s strong growth show that the expected surge in corporate profits can indeed be achieved. The Government will decide soon on Malaysia Airport’s restructuring plan including its proposals to increase airport taxes. KNM announced a JV with a leading US technology firm to provide EPCC services for biodiesel plants in South East Asia and Oceania. With the US markets rallying overnight on the US Fed’s comments that inflation is controlled, we expect another good day today. Resistance is now positioned at the 1250 pts level followed by the 1278 level.